Saudi Arabia and Qatar have announced plans to pay off $15 million Damascus owes the World Bank
Saudi Arabia and Qatar have pledged to pay off Syria’s outstanding debt to the World Bank. The move signals a Gulf-led initiative to support Syria’s economic recovery under the newly-installed government.
The Gulf nations announced their commitment to cover the roughly $15 million in outstanding debt following discussions on postwar Syria on the sidelines of last week’s World Bank and International Monetary Fund meetings in Washington.
Power in Syria changed late last year, when the jihadist group Hayat Tahrir-al-Sham (HTS) launched a surprise offensive, taking Damascus and ousting former President Bashar Assad. HTS leader Ahmed al-Sharaa became president and formed a new transitional government in March.
“This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than 14 years,” Saudi Arabia and Qatar said in a joint statement on Sunday.
The World Bank suspended its operations in Syria when the country’s civil war began in 2011. Settling the country’s arrears will allow the country to once again access the bank’s financial assistance and technical expertise at a time when its economy remains devastated, with GDP slashed by nearly 50% since 2010 and a reconstruction bill estimated at $400 billion.
Both countries have played a critical role in the diplomatic outreach to Syria’s new interim government. Saudi Arabia and its Gulf neighbors have increased humanitarian aid to Damascus recent months, but the debt settlement plan will mark the first instance of Saudi financial support being directed toward the country.
Syria’s central bank governor and finance minister attended the World Bank and IMF meetings in Washington this week, marking their first participation in more than two decades.
US sanctions, which have been in place since 2004 and target supporters of Assad, remain a major obstacle to Syria securing the aid it needs for reconstruction.
Last month, the US presented Syria with a list of conditions for partial sanctions relief, according to Reuters. Among the demands, were the destruction of any remaining chemical weapons stockpiles and increased cooperation on countering terrorism.
Russia has maintained ties with Syria’s new leadership despite granting Assad asylum after his ouster.
Russian President Vladimir Putin indicated that his country is committed to helping improve Syria’s social and economic conditions, including through humanitarian aid. The new government in Damascus has also signaled its intention to preserve “strategic” relations with Moscow.
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